AMERICAN FUNDS Sortino Ratio
| AAHTX Fund | | | USD 25.71 0.14 0.55% |
The Sortino Ratio measures risk-adjusted return using only downside deviation rather than total volatility. Unlike the Sharpe Ratio, which penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only returns below a target threshold, making it a more targeted measure of harmful volatility. Below is AMERICAN FUNDS's current Sortino Ratio with peer comparisons and related risk metrics.
Current Sortino Ratio Value
The current Sortino Ratio of 0.0769 places AMERICAN FUNDS at its current reading on this measure. This reflects AMERICAN FUNDS's positioning relative to its own recent range within Mutual Fund Funds.
Sortino Ratio | = | ER[a] - ER[b]DD |
| = | 0.0769 | |
| ER[a] | = | Expected return on investing in AMERICAN FUNDS |
| ER[b] | = | Expected return on market index or selected benchmark |
| DD | = | Downside Deviation |
Sortino Ratio Peers Comparison
AMERICAN FUNDS falls above the 0.07 peer average for Sortino Ratio. American Funds 2050 leads at 0.0764 while American Funds 2045 registers the lowest at 0.0694. AMERICAN FUNDS's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Sortino Ratio Relative To Other Indicators
The chart below plots Sortino Ratio against Maximum Drawdown for American Funds and its peers. Each point represents one equity — position along the horizontal axis shows Sortino Ratio while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
AMERICAN FUNDS's Maximum Drawdown of
3.86 runs about
50.22 times its Sortino Ratio of
0.08 . This indicates Maximum Drawdown substantially exceeds Sortino Ratio for AMERICAN FUNDS.
Methodology, Assumptions & Data Sources
AMERICAN FUNDS's Sortino Ratio currently stands at 0.0769. Sortino Ratio for AMERICAN FUNDS is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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